The words “economical” and “insurance” probably shouldn’t be used in the same sentence, especially when you are searching for the best price on coverage for first-time drivers. Because it’s so expensive, let’s go over some situations that have an impact on insurance rates, and find some ways to slash the price of the next policy you buy.
The type of vehicle that needs insurance is one of the main factors that determines the availability of the best auto insurance for first-time drivers. Vehicles with reasonable performance levels, good safety features, or a low likelihood of liability claims will cost quite a bit less to insure than adrenaline junky models.
The data below ranks auto insurance costs for some of the most budget-friendly vehicles to insure.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $3,244 |
| Honda CR-V EX 4WD | $3,273 |
| Ford Escape Limited 4WD | $3,470 |
| Toyota Prius | $3,501 |
| Toyota Tacoma 4WD | $3,650 |
| Dodge Grand Caravan SE | $3,660 |
| Honda Civic DX 4-Dr Sedan | $3,819 |
| Ford Edge SEL AWD | $3,826 |
| Chevrolet Impala LS | $3,819 |
| Toyota Camry LE | $3,847 |
| Toyota RAV4 Limited 4WD | $3,857 |
| Volkswagen Jetta LE 4-Dr Sedan | $3,847 |
| Ford F-150 XLT Crew Cab 4WD | $3,878 |
| Ford Explorer Limited 4WD | $3,885 |
| Chevrolet Silverado LS Regular Cab 2WD | $3,950 |
| Nissan Altima 2.5 S 4-Dr Sedan | $4,044 |
| Honda Odyssey EX-L | $4,053 |
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Cost estimates assume single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Kentucky minimum liability limits. Discounts applied include claim-free, and safe-driver. Information does not factor in zip code location which can increase or decrease premium rates noticeably.
Based on these rates, vehicles like the Hyundai Elantra, Honda CR-V, Ford Escape, and Toyota Prius are likely to be a few of the cheapest vehicles to insure for new drivers. The price of auto insurance will be more expensive because there is more liability exposure for first-time drivers, but in general those models will tend to have the best rates that you are likely to find.
One of the many components that aid in calculating car insurance rates is the neighborhood you call home. Areas with more people or even just a higher incidence of claims likely pay more, whereas areas with less people or fewer weather incidents have the benefit of cheaper car insurance.
The table below shows the highest-priced areas in Kentucky for first-time drivers to purchase car insurance in. Lexington is ranked #22 with a yearly premium of $1,454 for coverage, which is about $121 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Louisville | $2,112 |
| 2 | Frankfort | $1,795 |
| 3 | Jeffersontown | $1,736 |
| 4 | Ashland | $1,673 |
| 5 | Saint Matthews | $1,660 |
| 6 | Paducah | $1,631 |
| 7 | Danville | $1,596 |
| 8 | Elizabethtown | $1,595 |
| 9 | Radcliff | $1,590 |
| 10 | Madisonville | $1,552 |
| 11 | Murray | $1,549 |
| 12 | Georgetown | $1,536 |
| 13 | Winchester | $1,517 |
| 14 | Henderson | $1,511 |
| 15 | Richmond | $1,490 |
| 16 | Florence | $1,485 |
| 17 | Hopkinsville | $1,478 |
| 18 | Nicholasville | $1,474 |
| 19 | Covington | $1,472 |
| 20 | Erlanger | $1,463 |
| 21 | Bowling Green | $1,461 |
| 22 | Lexington | $1,454 |
| 23 | Independence | $1,422 |
| 24 | Fort Thomas | $1,412 |
| 25 | Owensboro | $1,376 |
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Price information shown is estimated as the specific area where the vehicle is garaged can decrease or increase premiums greatly.
Deciding which companies have the best auto insurance rates for first-time drivers will require a little more sweat in order to find coverage that fits your budget.
Each auto insurance company has their own guidelines for setting rates, so let’s take a look at the most affordable auto insurance companies in Kentucky. We do need to point out that Lexington auto insurance rates are impacted by many things which can significantly increase or decrease the price you pay. Simply having a birthday, filing a claim, or having a fender bender may cause policy rate changes that can cause some rates to be more affordable than before.
Best Car Insurance Prices for Inexperienced Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Cincinnati Insurance | $1,093 |
| 2 | Kentucky Farm Bureau | $1,174 |
| 3 | USAA | $1,223 |
| 4 | Auto-Owners | $1,413 |
| 5 | Motorists Mutual | $1,553 |
| 6 | Grange Mutual | $1,561 |
| 7 | Travelers | $1,680 |
| 8 | State Farm | $1,812 |
| 9 | Westfield | $1,832 |
| 10 | Safe Auto | $1,932 |
| 11 | Nationwide | $2,085 |
| 12 | Electric | $2,139 |
| 13 | Progressive | $2,140 |
| 14 | State Auto | $2,254 |
| 15 | Encompass | $2,358 |
| 16 | GEICO | $2,365 |
| 17 | Safeco | $2,791 |
| 18 | MetLife | $3,053 |
| 19 | Shelter | $3,263 |
| 20 | Liberty Mutual | $3,634 |
| View More Rates Go | ||
Cincinnati Insurance has some of the lowest car insurance rates in Lexington at around $1,093 annually. This is $1,050 less than the average premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual would also make the list of some of the cheapest Lexington, KY insurance companies.
As depicted above, if you currently buy coverage from Kentucky Farm Bureau and switched to Cincinnati Insurance, you might achieve a yearly savings of around $81. Customers with USAA may save as much as $130 a year, and Auto-Owners insureds might cut rates by $320 a year.
Bear in mind that those estimates are averages for all drivers and vehicles in Kentucky and and are not calculated with a specific zip code for first-time drivers. So the car insurance company that fits your needs best may not even be in the top 21 companies in the list above. That point stresses why you need to quote rates from many companies using your own personal information and vehicle type.
The example below highlights how deductible selection can affect premium costs when quoting cheap insurance for first-time drivers. The premiums assume a single female driver, full physical damage coverage, and no policy discounts are applied.
As shown above, a 40-year-old driver could lower their car insurance rates by $352 a year by changing from a $100 deductible to a $500 deductible, or save $528 by selecting a $1,000 deductible. Even younger drivers, such as the 20-year-old chart data, could potentially save $898 or more by using a higher deductible. When raising deductibles, it will now be necessary to have enough savings to cover the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Choosing a high-quality auto insurance company can be challenging considering how many companies sell insurance in Lexington. The information displayed below may help you analyze which car insurance providers you want to consider when comparing auto insurance rates for first-time drivers.
These rankings include insurance companies that insure vehicles in the majority of U.S. states, so smaller companies are not taken into consideration for this list. To compare price quotes from the insurers below and more, click here.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
| American Family | 91 | 86 | 95 | 83% | A | 89.7 |
| Esurance | 86 | 90 | 94 | 90% | A+ | 89.5 |
| The General | 86 | 93 | 89 | 84% | A- | 88.2 |
| GEICO | 79 | 89 | 95 | 87% | A++ | 87.8 |
| 21st Century | 86 | 82 | 90 | 84% | A | 86.4 |
| Liberty Mutual | 79 | 87 | 95 | 78% | A | 85.3 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
Get discounts on Lexington insurance rates
Insurers that offer cheap quotes for first-time drivers may additionally offer special discounts that can reduce rates by as much as 30% if you can meet the requirements. Popular auto insurance companies and a selection of discounts include:
- State Farm may include discounts for safe vehicle, good student, student away at school, defensive driving training, and accident-free.
- GEICO policyholders can earn discounts including air bags, membership and employees, defensive driver, driver training, good student, daytime running lights, and five-year accident-free.
- Allstate includes discounts for multi-policy, safe driver, resident student, FullPay discount, early signing, utility vehicle, and good student.
- SAFECO has discounts for safe driver, teen safe driver, homeowner, anti-theft, anti-lock brakes, accident prevention training, and teen safety rewards.
- Farm Bureau offers discounts for 55 and retired, renewal discount, youthful driver, safe driver, multi-vehicle, and driver training.
- Progressive may have discounts that include multi-vehicle, homeowner, continuous coverage, online quote discount, and multi-policy.
- AAA has savings for multi-policy, AAA membership discount, anti-theft, good driver, pay-in-full, education and occupation, and multi-car.
The chart below illustrates the comparison of insurance prices with and without discounts applied to the premium. The premium estimates are based on a female driver, no accidents, no driving violations, Kentucky state minimum liability limits, full coverage, and $100 deductibles. The first bar for each age group shows the price with no discounts. The second shows the rates with paperless filing, continuous coverage, paid-in-full, good student, anti-theft, and vehicle safety discounts applied. With discounts applied, theaverage yearly reduction on auto insurance for first-time drivers is 28% or $629.